Top 5 US Markets for Office Space to Let
It has been said by top Commercial real estate agents that all the major markets in the US have been affected by the economic slow down. The so called “hot” markets also show slowing, but some markets are still strong and have proved so far this year that they are key locations to watch.
Search Office Space, the Original Global Office Broker, have unveiled its top 5 US office market to watch this year.
A tendency for companies relocating or changing their office space location in the United States has been clearly showing that their preferences are along the west and east coasts, more particularly for NYC, San Francisco and LA.
New York City still holds the top spot to watch, it is the life-blood of the Northeast office sector. And with the expansion and consolidation of more than 50 Fortune 500 companies based in the city, the epicentre remains bustling with demand for office space to let. Combined with the power of this office market giant and its transatlantic location within the growing mobile global economy, the Big Apple is definitely exciting and an enticing location to have headquarters.
On the west coast, San Francisco is the top location to watch this year. The Bay area economy is one of the strongest in the United States. As for who is renting, solid demand for office space still continues to rise, coming from financial services, travel and tourism, and business and professional services. 550,000 sq ft are of office space is set to be completed in the financial district by October 2008, which will help the supply on office space lacking in the area.
Also in California, Search Office Space number three is Los Angeles, the densest market in the region with only 1% of the space contained within low-rise buildings. The city is a moderately large office market comprised of 42.8 million square feet, representing 17% of the total office space in LA Basin. The Downtown Submarket includes a large concentration of firms from the legal, utilities, accounting and finance sectors, and is home to many government agencies as well. The good news is, with the general economic slow down, tenants will be able to benefit from special offers on offices to rent as the landlords are getting more and more aggressive to fill up their space.
The years of rising landlord-favourable real estate markets are over, and Search Office Space has chosen Washington DC as the top four because the tide is turning in favour of the tenant. The economic slowdown has given tenants, especially smaller and mid-sized tenants, a stronger bargaining position for office space in Washington. All market signs are pointing to rents flattening or declining as the District shifts from a supply-driven commercial real estate market to a demand- driven one.
Houston’s commercial real estate market closed the first quarter with optimal conditions for a strong performance in 2008, according to Colliers International’s first quarter 2008 office overviews report, which is why Search Office Space has chosen it as the top five. Houston’s office market continued to benefit from strong job growth driving demand for office space. There is a strong tenant demand and an expanding employment base.
Plenty of options and great offers are available in these markets, whether businesses are looking for a prestigious office address like in New York City, or an office in DC at a rate like never seen before. Search Office Space list all these offices and can provide companies with free short listings, quotes and also book tours. Please call 888-989-0006 or send an email to [email protected], or go to www.searchofficespace.com.
Written by Emily Mouquot, Marketing Director, 18/09/2008.